Statement of Cash Flows-Indirect Method The comparative balance sheet of Yellow Dog Enterprises Inc. at December 31, 20Y8 and 20Y7, is as follows: Cash Accounts receivable (net) Merchandise inventory Prepaid expenses Equipment Assets Accumulated depreciation-equipment Total assets Liabilities and Stockholders' Equity Dec. 31, 2018 Dec. 31, 2017 $48,620 $59,710 74,710 80,490 106,730 99,770 4,350 3,020 217,410 178,750 (56,530) (43,840) $395,290 $377,900 Accounts payable (merchandise creditors) $83,010 $78,980 Mortgage note payable 0 113,370 Common stock, $1 par 13,000 8,000 Paid-in capital: Excess of issue price over par-common stock 202,000 107,000 Retained earnings 97,280 70,550 Total liabilities and stockholders' equity $395,290 $377,900 Additional data obtained from the income statement and from an examination of the accounts in the ledger for 2018 are as follows: